Polestar Vs. Tesla: Can Smaller EV Company Disrupt Giant Facing Boycotts, Protests With 'Trade In' Offer?

Electric vehicle company Polestar Automotive Holding PSNY has used several strategies to increase its sales and brand awareness in recent years. A new promotion aimed at Tesla Inc TSLA is gaining steam and sees the company attempting to lure away existing EV users.

What Happened: Outspoken political commentary and action from Tesla CEO Elon Musk could be damaging the brand awareness and sales of Tesla according to recent reports and sales figures.

Rival EV companies are looking to capitalize on the increased pressure on Tesla from the public and consumers.

Polestar has been attempting to lure Tesla customers in recent months and the company is recently offering a $5,000 discount for Tesla owners who lease a Polestar 3. Added into an additional $15,000 in lease incentives, Polestar customers that come from Tesla could save $20,000 as reported by InsideEVs.

Polestar US Head of Sales Jordan Hofmann said in a LinkedIn post that the promotion is working.

"The numbers speak for themselves. This week we saw some of the highest order days for Polestar 3, and the response to our Tesla Conquest Offer has been incredible," Hofmann said.

Hofmann said momentum for the Polestar 3 is growing.

Read Also: Polestar Secures New $450M Financing Deal To Boost Growth

Why It's Important: While Tesla has faced increased competition in recent years with more electric vehicle companies and models, the political moves by Musk have given companies a new rally cry of offering switch incentives that are working.

The incentives from Polestar and reported momentum from the company come as Tesla sales have declined in places like Germany and California to start the 2025 year.

Tesla is also facing protests at several locations around the world. Actor and filmmaker Alex Winter told InsideEVs that the protests aren't against Tesla but rather the man leading the company.

"We are anti-Elon Musk. The mission is to decouple Musk from Tesla, because he is a toxic figurehead for that company," Winter said.  

Winter, known for his role in the "Bill & Ted" film franchise, is one of the larger voices in the current Tesla protest movement. He said that it's important to get people to stop buying Tesla vehicles as this would force the company to part ways with Musk.

"I think it's the hypocrisy of it. This idea that these guys, who have built their wealth off of government subsidies and government handouts, are accusing hard-working, low-income people of being parasites."

Price Action: Tesla stock was down 2.8% to $284.65 on Monday versus a 52-week trading range of $138.80 to $488.54. Tesla stock is down 25% year-to-date in 2025 and up 51% over the last year.

Polestar stock was down 1.8% to $1.07 Monday versus a 52-week trading range of $0.61 to $1.94. Polestar stock is down 27% year-to-date in 2025 and down 40% over the last year.

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